FHA Loan Limits Decreasing

Yes, Yes it is true, FHA loan limits are decreasing for most areas as of October 1st, 2011.

Super important for you to understand how this effects your county and more importantly both for buyers and sellers.

FHA loan limits vary based on the county.

Denver
Now: $406,250
Oct 1, 2011: $368,000

Boulder
Now: $460,000
Oct 1, 2011: $402,050

Larimer
Now: $312, 500
Oct 1, 2011: $271,050

El Paso
Now: $325,000
Oct 1, 2011: $271,050

Fremont (NO CHANGE)
Now: $271,050
Oct 1 2011:$271,050

Click here to look up your county

NOTE: This is not the purchase price. This is the loan amount. Let's look an example: Denver will be at $368,000. Buyers could buy up to $380,000. After they put down 3.5% ($13300), their loan amount will be $366,700.

Remember seller concessions are still at 6% of the purchase price and can be used towards buyers closing costs, to buy down the rate or even to pay for the upfront mortgage insurance premium.